Indian IPOs Pick up After Four-Month Break

Initial public offerings in India are picking up again after a four-month hiatus, during which the market was dominated by follow-on share sales and block trades.

Rossari Biotech Ltd., a Mumbai-based specialty chemicals maker, is looking to raise as much as $66 million and last week received orders for 79.4 times the shares offered in a sign of strong demand. Meanwhile, a Blackstone Group Inc.-backed real estate investment trust, Mindspace Business Parks REIT, plans to raise as much as about $600 million in what would be the country’s second REIT IPO.

The two deals come after first-time share sales largely dried up in the South Asian country. The last big IPO was the $1.44 billion listing of SBI Cards & Payment Services Ltd. in March. Following that, there have been a number of tiny deals with only one raising more than $1 million, data compiled by Bloomberg show.

India’s equity markets have recovered significantly since they hit a trough in March, along with many of the region’s other indexes. The S&P BSE Sensex is up 44% from March 23, as is the the NSE Nifty 50.

While IPOs were quiet, India’s equity capital markets were nevertheless busy with follow-on offerings as companies sought funds to weather the coronavirus-induced lockdown and shareholders sold stakes. In May, some $5.44 billion worth of existing and new shares were sold in a record month for equity offerings. June saw 10 follow-on offerings raise $2.43 billion, the most in terms of deal count in a year, data compiled by Bloomberg show.

Investors may still have to wait a while for India’s unicorns — such as Ola, Flipkart and Paytm — to go public though. Softbank-backed online insurance platform Policybazaar aims to list in 2021, potentially becoming the first of the mega-startups to debut.

Read More: SoftBank-Backed Fintech Startup Seeks $3.5 Billion Value in IPO

UPCOMING LISTINGS:

  • Li Auto
    • Nasdaq
    • Size $1b
    • Filed July 10
    • Goldman Sachs, Morgan Stanley, UBS, CICC
    • Hong Kong stock exchange
    • Size $1b
    • Pre-marketing July 20-24
    • BofA, Haitong, CLSA, CICC
    • India stock exchanges
    • Filed July 10
    • Citi, Haitong, Nomura, Kotak
    • India stock exchanges
    • Size up to $598m
    • Anchor books open July 24, listing around Aug. 12
    • Morgan Stanley, BofA, Axis Capital, Citi, JM Financial, Kotak Mahindra, CLSA, Nomura, UBS, Ambit Capital, HDFC Bank, IDFC Bank, ICICI Securities
    • Philippines stock exchange
    • Size up to $272m
    • Pricing July 22, trading Aug. 13
    • BPI Capital, UBS

    More ECM situations we are following:

    • Online insurance platform Policybazaar aims to go public in 2021 at a valuation north of $3.5 billion, potentially becoming the first of India’s mega-startups to debut as its digital economy booms.
    • Everest Medicines Ltd. filed an application to list shares in Hong Kong.
    • Hangzhou Tigermed Consulting Co. will gauge investor demand for its Hong Kong listing from July 20-24, according to the terms of the deal obtained by Bloomberg News.

    See also:

    • Asia ECM Weekly Agenda
    • IPO data
    • U.S. ECM Watch
    • EU ECM Watch
    • To receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this article.

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